<DOCUMENT>
<TYPE>EX-99.1
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<FILENAME>shareholder_letter.txt
<DESCRIPTION>LETTER TO SHAREHOLDERS
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                        FIRST TRUST MORTGAGE INCOME FUND
                       120 EAST LIBERTY DRIVE, SUITE 400
                            WHEATON, ILLINOIS 60187



July 21, 2016

Dear Shareholders:

I am pleased to announce that the Board of Trustees of First Trust Mortgage
Income Fund (NYSE: FMY) (the "Fund") has approved the transition of the
management of the portfolio of the Fund to the Mortgage Securities Team of First
Trust Advisors L.P. ("First Trust"), the Fund's investment advisor. In May 2016,
we announced that Schroder Investment Management North America Inc.
("Schroders") had reached an agreement with Brookfield Investment Management
Inc. ("Brookfield"), the Fund's investment sub-advisor, to acquire the
Brookfield portfolio management team responsible for portfolio management of the
Fund ("Acquisition"). The consummation of the Acquisition will be considered an
"assignment" (as defined in the Investment Company Act of 1940, as amended) of
the investment sub-advisory agreement among the Fund, Brookfield and First
Trust, which will result in its automatic termination. According to Schroders,
the Acquisition is expected to be completed in the third quarter of 2016. The
consummation of the Acquisition does not affect the investment management
agreement between the Fund and First Trust.

On July 19, 2016, the Board of Trustees of the Fund approved the transition of
the management of the Fund's portfolio to the First Trust Mortgage Securities
Team to take effect upon the closing of the Acquisition. The Mortgage Securities
Team of First Trust is led by Jim Snyder and Jeremiah Charles. Furthermore,
First Trust has agreed to lower the investment management fee payable by the
Fund to First Trust from the current annual rate of 1.00% of the Fund's Managed
Assets to 0.85% of the Fund's Managed Assets. The Fund will begin paying First
Trust the lower investment management fee upon the closing of the Acquisition.

The Fund's investment objectives and principal investment strategies will not
change as a result of the management transition. The Fund's primary investment
objective will continue to be to seek a high level of current income, and the
Fund's secondary investment objective will continue to be to preserve capital.
The Fund will continue to pursue its investment objectives by investing in
mortgage backed-securities representing part ownership in a pool of either
residential or commercial mortgage loans.

The Mortgage Securities Team of First Trust also manages the portfolios of
several investment companies including: First Trust Low Duration Opportunities
ETF (Nasdaq: LMBS), an actively managed exchange-traded fund; the
mortgage-related investments of First Trust Strategic Income ETF (Nasdaq: FDIV),
a multi-manager, multi-strategy actively managed exchange-traded fund; the
mortgage-related investments of First Trust Enhanced Short Maturity ETF (Nasdaq:
FTSM), a multi-manager, multi-strategy actively managed exchange-traded fund;
and the mortgage-related securities of First Trust Multi Income Allocation
Portfolio, a multi-manager, multi-strategy investment vehicle for life insurance
companies writing variable annuity contracts and variable life insurance
contracts.

The Mortgage Securities Team of First Trust is led by Jim Snyder and Jeremiah
Charles. Prior to joining First Trust in 2013, Jim Snyder worked as a Senior
Portfolio Manager at Fort Sheridan Advisors where he managed mortgage portfolios
for institutional clients. Mr. Snyder has led several mortgage trading and
portfolio groups at Deerfield Capital, Spyglass Capital & Trading and American
Express Financial Advisors. Mr. Snyder managed AXP Federal Income Fund, and
developed mortgage trading strategies for Spyglass Capital and Deerfield's
Mortgage REIT and Opportunity Fund. Mr. Snyder holds a B.S. and M.A. in
Economics from DePaul University and an MBA from University of Chicago Booth
School of Business. Prior to joining First Trust in 2013, Jeremiah Charles
worked as a Vice President of Mortgage Product Sales for CRT Capital where he
advised pension funds, hedge funds, and institutional money managers. Before
joining CRT in 2011, Mr. Charles spent 6 years with Deerfield Capital Management
LLC as a Senior Vice President and Senior Portfolio Manager for the Mortgage
Trading team. He began his professional career as an Analyst at Piper Jaffray.
Mr. Charles holds a B.S. in Finance from the Leeds School of Business at the
University of Colorado, and a M.S. in Real Estate Finance with Honors from the
Charles H. Kellstadt Graduate School of Business at DePaul University.

First Trust has served as the Fund's investment manager since the Fund's
inception. First Trust, along with its affiliate, First Trust Portfolios L.P.,
are privately-held companies which provide a variety of investment services,
including asset management and financial advisory services, with collective
assets under management or supervision of approximately $96 billion as of June
30, 2016 through unit investment trusts, exchange-traded funds, closed-end
funds, mutual funds and separate managed accounts.

The Fund's daily closing New York Stock Exchange price and net asset value per
share as well as other information can be found at www.ftportfolios.com or by
calling 1-800-988-5891.

Sincerely,

James A. Bowen,
Chairman of the Board of Trustees of
First Trust Mortgage Income Fund



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